-44% in China: The End of Tesla’s Hype?

The sales report of automakers in China for September is out: Tesla is the manufacturer that lost the most. Here are the reasons.

Here’s a statistic we didn’t expect. For the first time since Q2 2022, Tesla sales have declined in China. And by an unprecedented margin: -44% compared to September 2022 and -33% compared to August 2023. This trend is confirmed over the longer term: -13.6% in Q3 versus 2022.

Admittedly, Tesla defends itself by highlighting the renewal of its Model 3 presented on September 1, 2023, but here we’re not talking about deliveries, but sales. Isn’t the Model 3 appealing? Tesla is perhaps prioritizing other markets first, such as Europe?

According to the China Passenger Car Association (CPCA), Tesla “China” sold 43,507 cars in September… including 41,428 Model Y.

Are post-Covid sales improvements a thing of the past? It seems that Tesla is focusing on its urgent priorities, as exports of Tesla cars produced in China for other markets surged by 454% compared to September 2022. Evidence that production isn’t slowing down.

To maintain its commercial appeal in China, Tesla unveiled an evolution of its Model Y early October, specific to this market for now. But implicitly, we understand that competition in China is such that customers now prefer Chinese cars like BYD or Xpeng, which are much more affordable.

This phenomenon is likely to spread worldwide once the Tesla hype subsides and consumers come back to reason, as not everyone can spend at least €38,000 on a car.

READ ALSO: Tesla updates its Model 3 and Model Y